The US-Mexico-Canada Agreement (USMCA) changed how goods move across North America. One important rule under this trade deal is called “rules of origin.” If your electronics are made in Mexico or Canada, do they count as North American products? That depends on these rules.
If you follow them correctly, your products may enter the U.S. without tariffs. If not, you could face extra costs, delays, or even rejected shipments.
What Are USMCA Rules of Origin?
To qualify for duty-free entry under USMCA, a product must be made in the U.S., Mexico, or Canada — not just assembled there. That means one of two things must happen:
- Tariff Shift: The product must change category during production.
- Regional Value Content (RVC): A set percentage of the product’s value must come from the region.
For electronics, this often happens during the final stage — called Final Assembly, Test, and Pack (FATP). For example, if you build the circuit boards in Asia but do the final assembly and testing in Mexico, the product might qualify.
You can see a full explanation of the rules here: USMCA Day One – International Trade Administration
Why These Rules Matter for Electronics
Most electronics use parts from many countries. Screens from China. Chips from Taiwan. Memory from Korea. That’s normal.
But companies are now designing products so that the final work — flashing the software, testing the product, and putting it in the box — happens in Mexico or Latin America. If that final step truly changes the product (not just screws or labels), it may count as made in North America.
At Titoma, we call this portable design — building products that can be assembled in different countries without changing the core design. We explain this more in our post: How DFM Helps You Handle 2025 Tariff Shocks
Does Country of Origin Still Matter?
Yes. Even if most of your parts come from Asia, what matters is where the final transformation happens.
If your product gets its function and identity — for example, when software is installed or full testing is done — in Mexico, then you might be able to call it “Made in Mexico.” If it only gets assembled or packed there without real changes, that doesn’t count.
We go deeper into this in our article: Why Country of Origin Still Matters
Don’t Guess — Know the Rules
Many companies assume that moving assembly is enough. It isn’t. Customs needs proof — such as what work was done, where, and how the product changed.
If you’re not sure how RVC or tariff shift works, this article explains it clearly: Understanding USMCA Rules of Origin – WithReach
Final Thoughts
USMCA rules are more than legal paperwork — they affect how you build your product. If you plan your design to allow flexible final assembly in North America, you may save a lot in costs and avoid delays.
At Titoma, we help companies build electronics that can shift between countries and still meet the rules. We think about COO, FATP, and supply chain strategy right from the start.
Want to find out if your product qualifies under USMCA?
Talk to us here
